The New Zealand Institute of Economic Research - a group better known for its views on inflation targeting and GDP growth - says New Zealand should move "sooner rather than later" to legalise marijuana which would generate a net gain of $300 million to the government accounts.

Drawing on Treasury research which found that legalising could reap $150m in new government revenue and reduce spending on drug enforcement by around $180m, NZIER principal economist Peter Wilson concludes that legalisation, combined with heavy taxation, regulation and education would be a better way of reducing social harm from the drug.

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